Far North Queensland business confidence marginally improved but profitability deteriorated in the December quarter of 2022.
Latest results of the December Quarter Pulse Survey indicate a quarter of weaker than expected performance – with improvements in total sales and revenues undercut by the high levels of operating costs and labour costs.
Total sales revenue and general business conditions were the standout positives for the survey with Far North Queensland businesses indicating their sales and revenue and general business conditions improved higher than forecast. Business feedback revealed that a combination of holiday spending and increased market demand especially in the area of tourism have boosted sales as well as overall general business conditions during the December quarter. However, these increases are marginal compared to September levels.
In contrast, while business sentiment on both labour costs and operating costs have comparatively improved, these changes are not significant enough to uplift profitability. Far North Queensland businesses reported lower than expected profits, with the profitability index dropping below 40, suggesting weak conditions.
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